Bridging the Pay Gap

Business NH Magazine, Aug 2007 by Mowry, Matthew J

While the state's foundation is granite, its corporate ceiling is decidedly glass. And women continue to have a tough time breaking through it.

Compared to women nationwide, NH women have made strides. The state ranks in the top 10 for median income for full-time working women (NH men rank sixth). However, NH women are earning significantly less than their male counterparts. In fact, women here earn a mere 71 cents for every dollar men earn and that disparity increases with age and education, according to the NH Women's Policy Institute (NH WPI).

The Institute released a 2005 study, "The Economic Status of Working Women in New Hampshire," which it reprinted with an addendum in November 2006. It found that while women's representation in the full-time workforce has increased from 27 percent to 40 percent during the past 30 years, "women's gains in earnings, business ownership, executive leadership, and decision-making positions in New Hampshire have lagged significantly behind females' advances in education and increased participation in the labor force"

Recent analysis of that data by NH WPI shows little has changed-women make up 57 percent of workers earning less than $25,000 and only 13 percent of those earning more than $100,000. "New Hampshire was in the bottom five states in the nation for gender earning parity, according to the Institute for Women's Policy Research," says Allison Churilla, policy fellow at the Carsey Institute at the University of NH and co-author of the NH WPI's report with Ross Gittell and Ann McAdam Griffin of UNH's Department of Management.

"We found that there are two factors contributing to women's poorer status compared to men: the family responsibilities they typically shoulder and the types of occupations women tend to concentrate in," Churilla says.

The gender gap doesn't end at pay. There's a leadership gap as well. The study found that NH women are visibly missing from boardrooms and executive offices at public companies.

"While females hold almost one-half (46.8 percent) of the managerial and professional positions in New Hampshire, women have not been promoted to executive leadership positions in New Hampshire public companies at a percentage similar to, or even near similar to, men," the report states. "Only 15 percent of executives at New Hampshire-based public companies are females."

Privately held companies may not be faring much better. Each year, Business NH Magazine compiles a list of the top 100 Private Companies in NH by gross sales. In 2006, only four of those companies were led by women.

The NH WPI report identifies five factors that contribute to greater equity: more women in management and professional occupations; more of the population with bachelor's degrees; a low percentage of workers in trade; a high percentage of women-owned businesses (NH ranks 42nd nationally); and high per capita spending on public welfare programs.

"Much can be done to improve the economic status of women in the state. To start, it is essential to improve the support system and culture in New Hampshire for working females and families. This should include childcare, education, and health care and business and public policies supportive of family life and flexible work schedules," according to the report.

Ellen Fineberg, executive director of the Women's Business Center, says "The assumption is because we are a growing state with a growing economy, that we are growing together." However, she says the report shows many are being left behind. Fineberg says businesses must take into account family-friendly policies or lose their best and brightest.

What Can Businesses Do?

The NH WPI is reaching out to businesses to identify ways to eliminate the pay gap and help more women move into leadership roles. The Institute is conducting a study on women's participation in corporate board and executive positions, including financial institutions, hospitals and publicly-held corporations. In addition to gathering data, NH WPI is interviewing business leaders about opportunities or barriers that may exist. The Institute will share its results on Nov 13 and will seek suggestions from the business community on best practices for corporate governance and avenues to increase women's participation in leadership roles.

"Employers don't always know they are treating men and women differently. It's not overt sexism, but it does affect women's earnings," says Judith Stadtman Tucker, editor of The Mother's Movement Online (www.mothers movement.org), and a board member of the NH Women's Lobby.

Katherine Merrow, executive director of the NH WPI, says about business leaders, "They understand women are a key component to their success" One thing companies can do is an internal audit of pay practices to make sure wages are set using objective criteria. Stadtman Tucker says employers can also be more transparent by posting pay rates by job category and holding managers accountable for pay equity.

Merrow says companies can also review exit and reentry policies and create policies that help women stay connected to the workplace while on leave. Subsidizing childcare Or eldercare or having on-site childcare can help women stay at their companies, Merrow says.